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Monday, September 8, 2014

SHould you buy Apple ahead of tomorrows iPhone release?

With Apple shares up the better part of 30% since April ahead of the big event there are those who are flashing back 2012 when shares sprinted higher ahead of the release of the original iPhone 5. Apple shares peaked on almost exactly the day of the release then collapsed by almost half over the next six months. Even today the market cap of Apple is lower than those heady days (though the stock price is higher… buybacks make up the difference).

I think the best course of action is to buy call options today, and dump them tomorrow.

The risk reward ratio is favorable

It will take a very disappointing product to send the stock lower

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